Berkshire Hathaway has seen its Class A shares rise for ten consecutive days, a streak not achieved since January 2018, with the stock reaching an intraday high of $786,000. This increase comes as the company, led by new CEO Greg Abel, capitalizes on its substantial cash reserves, recently investing $330 million in digital media firm Bending Spoons, following a $600 million investment in July.
The company has also increased its stake in homebuilder Lennar to over 13% of shares outstanding. Analyst Meyer Shields from Keefe, Bruyette & Woods suggests that higher short-term interest rates could benefit Berkshire, as the company is well-positioned to earn more from its cash holdings.
Additionally, the absence of significant hurricane landfalls in the third quarter may have positively impacted Berkshire's insurance operations. The rally follows Warren Buffett's transition to chairman emeritus after stepping down as chairman on September 18, with his son Howard taking over the role